Binance Coin - Gartley 886
BNB/USD is in the final stages of forming a 886 formation on the 1h chart, providing a trading opportunity with a 1:2.5 risk to reward.
The measurements for a valid 886 are detailed below.
C: 0.382 - 0.886
D: 1.13 - 1.618
X to D: 0.886 (Only applies when completes beyond 0.786)
The reversal may well take place at the but the better option would be to wait on the lower entry level.
This setup should be executed in real time based upon the price action that follows the confirmation of the potential reversal zone. My main focus is 22.27, once price tests this area I'll be dropping down to the 15m chart to look for an entry.
If price starts slowing down and consolidates in the current area it'll be unlikely I'll take the trade (I've provided an example below).
We experienced this type of price action around the C point as shown.
Remember to keep your risk in check, don't set any pending orders at 22.27 this should be executed and managed in real time.
Let's have a good week of trading!
I wouldn't say one method is better than another, as long as it works for the individual that's all that matters.